Tate & Lyle holds steady in quarter
July 23, 2009
by Bakingbusiness Staff
LONDON — Demand from food and beverage customers was stable and profits from value-added ingredients grew in the Food & Industrial Ingredients divisions of Tate & Lyle, P.L.C. in the first quarter ended June 30, the London-based company said July 23. Net debt of £1,068 million ($1,761 million) on June 30 compared with £1,231 million ($2,030 million) on March 31.
In Food & Industrial Ingredients, Americas, performance was marginally below the level of the previous year’s first quarter. The favorable impact of exchange translation partially offset lower income from co-product sales. Lower cereal prices, reduced demand from the U.S. livestock sector and weaker U.S. export markets pressured co-product sales.
Tate & Lyle said its sucralose business achieved operating profit ahead of the profit of the previous year’s first quarter. The mothballing of the sucralose plant in McIntosh, Ala., is ahead of schedule.
Tate & Lyle anticipates a satisfactory performance in the second quarter although the results are not expected to match those of the previous year’s second quarter, which saw strong co-product revenues during a commodity price spike. U.S. corn prices nearly reached $8 per bu in July 2008.